In 2016 as the state of New Mexico faced both new and continued financial challenges, state agencies were asked to implement dramatic and wide-ranging budget reductions. For hospitals, physicians and dentists, reductions in Medicaid payment rates were expected to reach $78 million. The cuts were expected to have a disproportionate impact on safety net hospitals, which would experience a 5% cut to inpatient payments, a 3% cut in outpatient payments and a 20% cut in the enhanced supplemental payments intended to offset uncompensated care.

In 2016 as the state of New Mexico faced both new and continued financial challenges, state agencies were asked to implement dramatic and wide-ranging budget reductions. For hospitals, physicians and dentists, reductions in Medicaid payment rates were expected to reach $78 million. The cuts were expected to have a disproportionate impact on safety net hospitals, which would experience a 5% cut to inpatient payments, a 3% cut in outpatient payments and a 20% cut in the enhanced supplemental payments intended to offset uncompensated care.